The figure below shows the market for computers in a small importing country. Dd and Sd are the domestic demand and supply curves of computers, respectively.
The consumption effect of the tariff on computers is worth
A. $76 million.
B. $78 million.
C. $2 million.
D. $4 million.
Answer: C
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Does the experience of World War II demonstrate that government budget deficits and surpluses can be used to stabilize aggregate demand?
A) No, because the deficits run during the 1930s did not end the recession. B) No, because the fact that deficits or surpluses can alter aggregate demand does not prove they can stabilize it. C) Yes, because nominal GDP increased by more than the amount of the deficit in each wartime year. D) Yes, because World War II demonstrated the multiplier effect of deficits.
Which of the following did NOT play a role in keeping Greece from defaulting between 2010 and 2012?
A) International Monetary Fund B) United Nations C) European Union D) European Central Bank
The Affordable Care Act is intended to reduce the price of health care. A decrease in the price of health care may
A) increase the number of doctors office visits if office visits are considered an inferior good and the substitution effect dominates the income effect. B) decrease the number of doctors office visits if office visits are considered an inferior good and the substitution effect dominates the income effect. C) increase the number of doctors office visits if office visits are a normal good. D) Both A and C.
Households interact with business firms by:
a. buying resource services from business firms. b. paying wages for the use of labor. c. selling goods and services to firms. d. receiving payments from firms for use of resource services. e. paying rent to firms for the use of land.